Buying time on Mississippi River shipping crisis

Dec. 9, 2012
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The Port of St. Louis, one of America's busiest ports, seen on Wednesday, is the channel for large amounts of coal, petroleum-products and agricultural goods on a daily basis along via the Mississippi River. / Colby Buchanan, AP

by Judy Keen, USA TODAY

by Judy Keen, USA TODAY

Shippers are bracing for the closure of a 200-mile stretch of the Mississippi River that could bring most commerce on the vital waterway to a standstill, but the crisis could come in January, not this week as originally predicted.

Mark Fuchs, a National Weather Service hydrologist in St. Louis, says a new forecast indicates that water levels in that portion of the Mississippi could drop below 9 feet sometime next month. Shipping companies say water that shallow would make it almost impossible for loaded barges to navigate between St. Louis and Cairo, Ill.

The timetable changed because low water levels are prompting moisture from the Missouri River flood plain to flow back into the river, Fuchs says. The Missouri feeds into the Mississippi.

Heavy rain or snow could improve the outlook, Fuchs says, while frigid temperatures in the upper Midwest could cause ice blockages, reducing the flow.

"I haven't seen great reason for optimism yet," Fuchs says. Because of drought conditions, "I would be surprised if we don't set low water records at St. Louis and other locations this winter season." A drop in Mississippi water levels below 9 feet "appears unavoidable" at some point, he says.

Governors and members of Congress have appealed to President Obama to order the Army Corps of Engineers to reverse its decision to decrease water releases from reservoirs upstream into the Missouri River. The annual reduction is meant to ensure adequate reservoir levels and prevent flooding.

Industry groups warn that a temporary river closure would delay movement of $7 billion in commodities. Whenever a shutdown occurs, "the economic impact to the nation - and our exports - will be severe," says Debra Colbert of the Waterways Council, which represents ports and shippers.

Dan Mecklenborg of Ingram Barge Co., based in Nashville with a fleet of about 5,000 barges, says the likelihood of a Mississippi shutdown already has affected business. Some customers have canceled planned barge shipments, he says, and barges are being loaded to 8-foot drafts - their depth in the water - instead of the usual 9 feet or more.

Ingram now is asking customers to sign contracts that require them to pay rent on barges if they become stranded, Mecklenborg says. Without significant rainfall or an increase in reservoir releases, he says, "you're going to see a heck of a lot of barges" motionless on the river.

Canal Barge Co., which is based in New Orleans and operates 850 barges, is now limiting loads to 8-foot drafts. President and CEO Merritt Lane says it's "really not worthwhile" economically to make them much lighter. Smaller loads increase shipping costs because more barges are necessary.

Lane worries about a river shutdown's effect on his family-owned company and its 630 employees. "It would be very detrimental to the national economy; it will hurt our industry," he says. "It's not good for Christmas bonuses. It's just not good."